Joint Communiqué of the Tenth Joint Bilateral Commission between the Republic of South Africa and the Islamic Republic of Iran held in Tehran on 31 July 2008 (corresponding to 10 Mordad 1387)

1. At the invitation of His Excellency Dr Hossein Samsami, the Acting Minister of Economic Affairs and Finance of the Islamic Republic of Iran, Her Excellency Dr Nkosazana Dlamini Zuma, the Minister of Foreign Affairs of the Republic of South Africa, paid an official visit to the Islamic Republic of Iran on 31 July 2008 (corresponding to 10 Mordad 1387 Iranian Calendar) in order to participate in the Tenth Meeting of the Joint Bilateral Commission.
   
   
2. During the visit, Dr Dlamini Zuma and Dr Samsami conducted bilateral discussions and led their respective delegations to the meeting of the Joint Bilateral Commission. Dr Dlamini Zuma also paid a courtesy visit to His Excellency President Mahmoud Ahmadinejad and had bilateral discussions with Dr Ali Larijani, the Speaker of the Parliament, Dr Saeed Jalili, the Secretary-General of the National Supreme Security Council of Iran, as well as with the Ministers of Foreign Affairs and of Energy.
   
   
3. Other members of the South African delegation interacted with their Iranian counterparts in the Working Groups of the Joint Bilateral Commission.
   
   
4. In their remarks at the Joint Bilateral Commission, both Ministers expressed their satisfaction with the good relationship that exists between South Africa and Iran, as well as at the efforts made since the Ninth Joint Bilateral Commission to strengthen political, economic and cultural ties between the two countries.  Both Ministers expressed the desire to see the relationship develop further. The meeting between the Ministers was preceded by a meeting of the Joint Bilateral Commission’s “Political and Social Affairs Working Group” and the “Economic and Technical Working Group”.
   
   
5. Both Working Groups reviewed the decisions taken during the Ninth Meeting of the Joint Bilateral Commission held in Pretoria on 21 and 22 August 2006 (corresponding to 30 and 31 Mordad 1385) and expressed their satisfaction with the progress that had been achieved.
   
   
6. It was also recognised that the Third Deputy Ministerial Working Group, which met in Pretoria in July 2008, contributed significantly to the good relations and interaction that exist between South Africa and Iran. It was agreed that the Fourth Deputy Ministerial Working Group should be held in Tehran before the Eleventh Meeting of the Joint Bilateral Commission.

7.         Political and Social Affairs Working Group

It was noted that detailed discussions on political issues had taken place during the Third Meeting of the Deputy Ministerial Working Group, held in Pretoria on 17 July 2008. The Joint Bilateral Commission endorsed the outcome of these discussions and also exchanged further views on the following:

7.1.      The Middle East

The two sides acknowledged the political and economic importance of the Middle East region and agreed that without lasting peace in the region there can be no global peace, stability and economic prosperity. Views were exchanged on the situation in Lebanon, Palestine, Iraq and Afghanistan and the Iranian side provided an overview of the role that the Islamic Republic is playing to enhance peace, security and stability in the region.

7.2.      Africa

The South African delegation provided a detailed overview of developments in Africa and the role that South Africa is playing to promote peace and stability and economic development. It also provided a briefing on the outcome of the African Union Summit meeting, which was held in Sharm El Sheikh in Egypt in June 2008. The Iranian delegation expressed its desire to develop its relations with Africa and to contribute to its development by way of formal interaction with the African Union.

The two delegations exchanged ideas and information about co-operation on Africa’s socio-economic development programme NEPAD, as well as measures to expedite and support cooperation between Iran and NEPAD.

7.3.      Iran’s nuclear programme

It was noted that a detailed discussion on Iran’s nuclear programme had taken place on the sidelines of the Third Meeting of the Deputy Ministerial Working Group between HE Mr Mohammad Reza Baqeri, the Deputy Foreign Minister for African Affairs of Iran and Amb Abdul Minty, the Deputy Director-General at the Department of Foreign Affairs of South Africa and also South Africa’s representative on the Board of Governor’s of the International Atomic Energy Agency. The outcome of the above-mentioned discussions were endorsed by the Joint Bilateral Commission

Both sides reiterated the basic and inalienable right of all NPT States as provided for in Article IV of the Treaty, to develop research, production and use of nuclear energy for peaceful purposes without discrimination and in conformity with Articles I, II, and III of the NPT. They reaffirmed that nothing in the Treaty should be interpreted in a way that inhibits or restricts the right of all parties to the Treaty to develop nuclear energy for peaceful purposes.

It was also reiterated that States’ choices and decisions in the field of peaceful uses of nuclear energy and their fuel cycle policies should be respected.

Both sides underlined that all issues on safeguards and verification, including those of Iran, should be resolved within the framework of the IAEA, and should be based on technical and legal grounds. South Africa emphasised the importance for the IAEA to continue its work in resolving the Iranian nuclear issue and in this context encouraged the Islamic Republic of Iran to continue to co-operate closely with the Agency.

Both sides reiterated their commitment to the non-proliferation of all weapons of mass destruction and to their complete elimination.

7.4.      Human Rights

Both sides emphasised the importance of international co-operation to protect and promote human rights.

7.5.      Regional Co-operation

The two sides expressed their commitment to co-operate closer within regional organisations, including the Indian Ocean Rim Association for Regional Co-operation (IOR-ARC) and the New Asia- Africa Strategic Partnership (NAASP).

7.6.      Provincial Co-operation

The parties considered as important the establishment and development of closer relations between individual provinces in the two countries, according to the capabilities of the provinces in economic, industrial, social and other areas of mutual interest.

7.7.      Co-operation in combating drug trafficking and disaster management

The Interior Ministry of the Islamic Republic of Iran expressed its readiness to co-operate and exchange experiences with South Africa on anti drug campaigns and in the management of natural disasters. If deemed necessary, then draft documents of co-operation could be exchanged and further considered.

7.8.      Immigration and consular issues

The South African delegation acknowledged receipt of a draft MOU which would make provision for holders of Diplomatic, Official or Service passport holders of the two countries to visit the other country without a visa for a period of thirty days. The draft is being considered by the relevant South African authorities and the South African delegation undertook to provide a formal response as soon as possible.

The Iranian delegation advised that South African ordinary passport holders on bona fide business trips are able to visit Iran for 72 hours and for tourism for fifteen days by applying for a visa at one of Iran’s international airports. The South African delegation welcomed this decision since it would encourage South African nationals to visit Iran and undertook to consider a reciprocal arrangement.

The Iranian side expressed its concern about the difficulties experienced by Iranian nationals teaching at the Iranian Government school in Pretoria to obtain residence and work permits. The South African side indicated that it would submit a draft Agreement for consideration by the Government of Iran which would enable the teachers to apply for a treaty permit.

7.9.      Health Co-operation

In terms of the MOU on Health Co-operation, which was signed in Tehran in December 2004, 29 Iranian health professionals have been deployed in three South African provinces. The South African delegation expressed appreciation for the professional service that these health professionals have rendered to the South African public. The Iranian delegation indicated that it would be willing to release additional doctors, nurses and midwifes to work in South Africa. This proposal was welcomed by the South African delegation, which indicated that its requirements in this regard and a proposal on the way forward would be communicated to the Government of Iran as soon as possible.

7.10.   Housing Co-operation

The two sides agreed to co-operate in the field of housing by exchanging information and expertise on new building techniques and building materials and by facilitating involvement in low-cost housing projects in both countries.

7.11.   Arts and Culture

The two Parties underscored the Joint Communiqué of the Ninth Joint Bilateral Commission between the Republic of South Africa and the Islamic Republic of Iran with particular emphasis on strengthening and committing to making the areas practical as agreed in the Programme of Co-operation objectives.   

Both Parties engaged each other on identifying areas for co-operation for the years 2009-2011, which will be reviewed by both Parties to consolidate the cultural relations as agreed in the Programme of Co-operation.

Both Parties agreed on the general principles of the Programme of Co-operation as presented by the Republic of South Africa to the Islamic Republic of Iran and the parties agreed that the Islamic Republic of Iran will include areas of Cultural Heritage conservation and preservation as an important factor in the Programme of Co-operation 

7.12.   Tourism

The Iranian side expressed its readiness to establish a joint committee on tourism in order to facilitate the implementation of the MOU on Tourism Co-operation, which was signed in 2000. In this regard, an invitation has been extended to the Minister of Environmental Affairs and Tourism of South Africa to visit the Islamic Republic of Iran. It was agreed that the South African side would endeavour to identify dates for the visit as soon as possible.

The Iranian side renewed its invitation to the Minister of Environmental Affairs and Tourism of South Africa, as well as potential investors, to participate in the “Second International Forum on Investment in the Iran Tourism Industry”, which will take place in Tehran on 8 and 9 November 2008. The South African side agreed to consult with the Minister in this regard and to inform potential investors of the Forum.

7.13.   Sport Co-operation

The Iranian and South African delegations expressed the desire for closer co-operation in the area of sport and physical education between the two countries. The delegations noted that a Memorandum of Understanding was signed between South Africa and Iran in 2002, but has not as yet been implemented, through the exchange of diplomatic notes confirming that the MOU met the constitutional requirements of both Countries. The Meeting proposed that this exchange of diplomatic notes should, if possible be concluded within a period of two months from the signing of the joint communiqué.

In addition, the Iranian delegation presented a further “Draft Memorandum of Understanding on Co-operation in the Field of Sport between the Physical Education Organisation of the Islamic Republic of Iran and the Sports Ministry of the Republic of South Africa”. This draft should form the basis for further discussion between the two countries and could, if agreed to, be signed at a later date and would be complementary to the already signed MOU. A response from the South African Department of Sport and Recreation should if possible be received within a period of three months.

7.14.   Media and Communications

The delegation from Islamic Republic of Iran Broadcasting (IRIB) presented a MOU for co-operation between the IRIB and the South African Broadcasting Corporation (SABC), in line with Iran’s intention to expand friendly relations and co-operation in the field of broadcasting media. The South African delegation made an undertaking to forward the said draft MOU, to the SABC and other media institutions for their consideration.

The South African Department of Foreign Affairs will request the Government Communication and Information Services of South Africa (GCIS) to liaise with the IRIB’s bureau in Pretoria with regard to facilitating the issuing and extension of visas for the bureau’s personnel.

8.         Economic and Technical Working Group

8.1.      Economic Cooperation, Investment and Trade:

The Iranian side submitted a draft MOU on the establishment of an Investment Committee, the South  African   side,  will  respond  to  the MOU within three months, whereupon  the Organisation  of  Investment  Economic and Technical  Assistance  of  Iran and  Iran  Foreign Investment  Company (IFIC) endeavor  to  facilitate  the investment  of  IFIC in South  Africa.

With  regard  to  Free  Zones and  Special  Economic  Zones,  both  sides   agreed  to  the  following:

• South Africa to provide relevant information on their Industrial   Development Zones to the Iranian side, including capacity building and training programmes. 
• Iranian side  to  provide  relevant  information  on  their  Free  Zones,  Special  Economic  Zones  and  investment projects  for  dissemination to the South  African   business  community.

The Republic of South Africa and the Islamic Republic of Iran agreed to  exchange information on the regulations, laws and practices of the Free Zones and Special Economic Zones to enhance the utilization of such.

In order to promote economic cooperation, the two countries agreed to participate in each other's trade exhibitions.

To expand economic cooperation, the Iranian side undertook to present a proposal to establish an exhibition centre in South Africa. South Africa will, upon receipt of the said proposal, facilitate meetings with the relevant organizations in South Africa.

Both sides have provided each other with the details of websites where relevant tenders and projects in the field of construction, mining and energy are published.

www.engineeringnews.co.za                       www.mefa.gov.ir.
www.eskom.co.za                                         www.investiniran.ir.
www.transnet.co.za                                      
www.dme.gov.za

Both  sides  agreed  to  exchange   the  list  of   companies   due  for  privatization  and  investment  in  both  countries.

Both sides  agreed  to encourage   their  investors  to invest  in each others countries and  to  hold  joint  training  courses  for  the  private  and  public   sector   in order  to exchange  experiences.

The South African  side  agreed  to supply  information  related  to  projects (NEPAD),  regulations and  laws related  to investment as  well  as  the needs  for skills  and  technology   transfer .

With regard to the Preferential Trade Agreement (PTA), the South African side agreed to again supply the contact details of the Southern African Customs Union (SACU) secretariat to the Iran Trade Promotion Organization. The South African side advised that as a member of SACU it could not put forward the Iranian proposal and that Iran was advised to contact the SACU secretariat directly to propose a PTA.  

8.2.      Small Enterprises

Both parties expressed their readiness for empowerment and organizing manpower within cooperative societies and creating employment, trade, commercial and technical opportunities in order to share experiences and establish joint ventures and investment opportunities. The Ministry of Co-operatives of the Islamic Republic of Iran will submit the draft of the Memorandum of Understanding on co-operatives to the Co-operative Unit within the Department of Trade and Industry of the Republic of South Africa, and to the Small Enterprise Development Agency (SEDA) through diplomatic channels within a month's time. Both sides will take the necessary measures to finalize and operationalize this proposal within the next six months.

8.3.      Mining Co-operation

Based on the capabilities of the Islamic Republic of Iran and the Republic of South Africa in the field of mining and mining industries, the following are proposed:

• Exchange of information to familiarize with the two countries’ capabilities and requirements.
• Exchange of experts in the mining sector to explore new fields of co-operation of mutual interest in mining and the mining industries sector.
• Develop trade co-operation especially in the field of iron ore, coal, etc.
• Exchange of experiences in the field of mine engineering, know-how and technology on individual sectors of exploration, extraction and mineral processing especially on chromites, ferro-chrome, gold, antimony, manganese, ferro-alloys, titanium etc.
• Expansion of co-operation in the aluminum sector, especially in the field of production, technology, know-how and exchange of related experiences.
• Encourage South African mining companies to participate in the international tenders of mining projects in Iran, especially in the Nepheline-Syenite Project in Sarab.
• Development of co-operation in the field of bioleaching of copper ores.
• Develop mutual co-operation on training and research in mining and mining industries related, especially establishing relations between South African research institutions and the Iran Mineral Processing Research Centre (IMPRC) in Karaj.
• Exploring joint co-operation in the two countries' markets and also in third markets.
• Encourage Iranian and South African companies to participate in mineral and metal beneficiation to value-added products. 

8.4.      Banking Co-operation

In view of the recent visit of the Vice Governor of the Central Bank of the Islamic Republic of Iran to South Africa and the discussions with the Reserve Bank of South Africa, a number of commercial banks and the Export Credit Insurance Corporation  (ECIC) of  South Africa, both sides agreed to explore proposals for the Iranian banks to establish branches, subsidiaries and/or joint banks or financial institutions with the South African private sector for the purpose of providing sources required by future joint venture companies for implementation of power plants, oil refineries, small and medium-sized industries and housing projects, trade, banking and insurance services.   

Both sides expressed readiness to arrange delegations to visit the other country in the next three months so as to materialize the items stipulated in the paragraph above which are in line with the promotion of the mutual economic and banking relationship.  

8.5.      Science and Technology

Note was taken of the Minutes of the Third Session of the Joint Executive Committee on Scientific and Technological Co-operation, which was held in Tehran from 20 to 24 January 2008. The importance of implementing the decisions taken during this meeting was emphasised. It was also noted that the Fourth Session of the Joint Executive Committee in Science and Technology will be held in South Africa in 2009.

Pardis Technology Park presented a formal proposal for co-operation with South Africa in a variety of fields, particularly related to information technology. The South African side undertook to submit the proposal to the Department of Science and Technology of South Africa and to provide PTP with a formal response as soon as possible.

8.6.      Agriculture Co-operation

The Ministry of Jihad-e-Agriculture of Iran submitted a formal proposal regarding co-operation with South Africa in the field of agriculture. The proposal included plans for co-operation in the following fields:

• Exchange of information and expertise
• Importation of seed and plant germ plasma from South Africa
• Implementation of joint projects in five areas
• Joint workshops
• Biological co-operation
• Co-operation in the field of cotton fibre technology
• Transfer of technology

The Ministry also proposed co-operation with the Rural and Nomadic Tribe Women Department, the Plant Protection Organization, the Iran Fisheries Organization, the Plant Production Department, the Industries and Infrastructure Department, the Animal Husbandry Department, as well as the Forest, Rangeland and Water Shed Management Department.

In the absence of a representative of the South African Department of Agriculture, the South African side undertook to forward the proposal to them and other relevant institutions and to provide the Government of Iran with a formal proposal as soon as possible.

8.7.      Labour Co-operation

The Iranian side indicated that it is in agreement with the text of the draft MOU on Labour and Social Security, which was presented to them for consideration by South Africa in December 2007. The MOU is now ready for signature and it was agreed that an opportunity would be sought for the signing of the MOU.

The South African delegation also indicated that it will endeavour to expedite a response on the draft Iranian MOU on Labour Force Exchange, which was presented to it in December 2007.

8.8.      Transport Co-operation

Both sides agreed to inform the other side about their transport infrastructure projects which are ready for implementation and provide opportunities for joint venture, within three months.

The South African side informed the desire to utilize the Iranian civil engineers and the other transportation specialists for construction of roads, airports, ports, harbors and rail projects in South Africa.

The Iranian side welcomed the above mentioned proposals and agreed that it will send their recruitments to South Africa within three months after receiving of formal request from South Africa.

Both sides agreed to co-operate in the field of oil, gas, drilling, offshore and onshore installations. Storage tanks and underground piping plus capacity developments in areas of transportation and ship buildings (Ferries, Crew boats, Barges, Tugs, Catamaran). The related information will be exchanged between two sides in order to define the suitable projects for further action.

Railway

Both sides expressed their readiness to cooperate on supplying the bogies and couplers needed by the Railways of the Islamic Republic of Iran.

Both sides expressed their readiness to exchange experiences in the fields of movement, traction, construction, maintenance of tracks, technical buildings, partnership in rail joint projects and cooperation in training of manpower on the scholarship basis and exchange of professors and students.

South Africa has proposed to jointly explore the establishing of the manufacturing of locomotive and rolling stock on the international standard gauge to provide the state of the art railway transport systems. The Iranian side agreed to this proposal and will follow up the matter.

Iranian side expressed its readiness to share its experience and knowledge in the design, construction and development, manufacturing and maintenance of high speed trains, metro systems, infrastructures facilities, rolling stock and equipment for urban and suburban railway systems in South Africa, SADC, Africa and Iranian markets.

Civil Aviation

Both sides agreed that the relevant aeronautical authorities of both countries should meet and discuss the possibility of code – sharing.

Transit of Cargoes

Both sides agreed that to facilitate the transit of cargoes through either country.

Maritime

The Iranian side offered the South African side the draft of a Memorandum of Understanding on the recognition of seafarers certificate of competency as per provisions of regulation 1/ 10  of STCW 78 convention as amended and the South African side agreed that the context of the MOU will be considered and after three months they will give their view point on the MOU.

Iranian side expressed the country's capabilities and potential to interact with South Africa in all aspects of maritime mode of transport – (ship building, offshore structures construction, maintenance, etc) - to enhance socio- economic development of South Africa, SADC and Africa.

South African side accepted this proposal and agreed to facilitate the realization of the proposal.

Both sides expressed their readiness for implementation of the Agreed Minutes dated 27 May 2008 on Second Joint Merchant Shipping Committee between the two countries.

The Islamic Republic of Iran Shipping Lines (IRISL) expressed its readiness to carry consignments to/ from South African ports, as well as other ports throughout the world, provided that there are sufficient volumes of cargos.

The South African side welcomed the proposal and will facilitate a forum for discussion. Necessary safety and security audit in compliance with the International Maritime Organization and SAMSA will be needed.

8.9.      Energy Co-operation

Both sides agreed to co-operate in design and engineering services for the establishment of power plants (solar, water, coal, wind) as well as maintenance, skills and technology transfer and parts manufacturing in South Africa and the region.

The Parties recognise the Agreement between the Department of Minerals and Energy (South Africa) and the Energy Ministry of Iran, dated 18 June 2006 in which cooperation was initiated.

A representative from South African State Owned power utility, Eskom representing the electricity sector, has met with, and evaluated the capabilities of related companies in Iran, being MAPNA Group and holding company SATKAB.  A report in this regard will be produced during August 2008.

Competencies identified for future extension of bilateral cooperation include:

• The ability to deliver power and water projects on an EPC, IPP and other contracting basis;
• The ability to manufacture main and auxiliary equipment of power plants.
• The ability to construct dams and hydro projects, as well as infrastructural projects.
• The ability to support the above through Operating and Maintenance services and contracts.
• The ability to design and construct power network systems, including transmission lines and substations, equipment and auxiliaries;
• The ability to design and manufacture a wide range of power transformers;
• The capability to design, engineer, procure and project manage the complete value chain referred to above;
• The capability of Iranian experts to alleviate the current skills shortages, especially those related to engineering.

Both Parties agreed that the Iranian Parties express their desire and intent to make its expertise available to South Africa, and to commence with the pre-qualification for the provision of services, spare parts and projects to the South African power industry.

MAPNA hereby also states its intent to propose to the South African Government, a power project on a turn-key basis, being EPC or IPP, for the provision of a CCGT power plant, in the range required by South Africa.  (estimated at this time to be 1000MW)

The Parties note the dependency on fuel (Gas), and it is their desire that PetroSA and NIOC/NIGEC consider the formalisation of a supporting agreement in this regard.

Farab Company stated its interest in the construction of dams and hydropower plants on an EPC, BOO or BOT basis. In this context, it was agreed that the South Africa side would make information regarding such projects available to Farab Company.

Satkab Company offered its technical and engineering expertise in the fields of water and power industries for consideration by the South African side. It was agreed that these capabilities would be brought to the attention of the relevant South African authorities, institutions and companies with a view to expanding co-operation in the above-mentioned areas. Reference was also made to discussions held between Satkab and the Department of Minerals and Energy of South Africa during the Ninth Joint Bilateral Commission held in Pretoria on 21 and 22 August 2006 and it was agreed that the decisions reached during that time should be implemented as soon as possible.

8.10.   Iran Combine Manufacturing Company

Iran Combine Manufacturing Company (ICMCO) stated its readiness for common investment with the South African counterpart for the assembly lines and supplying Complete Built Units of its products such as combines, balers, necessary machineries and parts in South Africa for the local South African markets and the region.

The South African counterpart undertook to introduce private companies in this regard and also to facilitate the benefits of investment for the Iranian counterpart as soon as possible.

8.11.   Iran Tractor Manufacturing Company

Iran Tractor Manufacturing Company (ITMCO), expresses its readiness to trade its products with South Africa, also to perform feasibility studies to invest in tractor assembly or manufacturing lines, through a joint venture with the private sector in South Africa. Joint venture products can also be exported to other African countries from South Africa.

8.12 Manufacturing of vehicles

Both parties agreed to co-operate in the field of investments concerning commercial vehicles, buses and trucks as well as automotive parts and components in South Africa.

8.13.   Food sector

TATAO and UrumAda, significant Iranian food producers, introduced their respective companies and products to the South African delegation. They will provide their profiles, enquiries, production abilities and the exportable products to the Department of Trade and Industry (DTI), whereupon the DTI will provide a list of companies in the food sector and exportable foodstuff to Iran.

9.         HE Dr Behrouz Alishiri, the Deputy Minister of Economic Affairs and Finance of Iran and Amb Jerry Matjila, the Deputy Director-General: Asia and Middle East at the Department of Foreign Affairs of South Africa, was appointed to oversee all activities related to the Joint Commission in their respective countries and to ensure that the decisions reflected in this Joint Communiqué were implemented in good time.

10.       It was agreed that the Eleventh Meeting of the Joint Bilateral Commission should be held in South Africa and that the exact date should be agreed upon through diplomatic channels.

11.       Dr Dlamini Zuma expressed her appreciation to Dr Samsami for the hospitality accorded to her and her delegation.

12.       The Joint Communiqué of the Tenth Meeting of the Joint Bilateral Commission between South Africa and Iran was concluded in Tehran on 31 July 2008 (corresponding to 10 Mordad 1387) in the English and Persian languages, which are both equally authentic.

Issued by Department of Foreign Affairs
Private Bag X152
Pretoria
0001

31 July 2008